When the value of the dollar decreases, Americans are apt to invest in tangible assets such as real estate. As depreciation continues, it comes as no surprise that real estate mutual funds (REMFs) have grown 6% so far this year. What is surprising, however, is seeing financial success in one of the worst real estate markets in years.
The rationale behind REMFs success is its investment within real estate investment trusts (REITs) which focus on commercial real estate. REITs invest primarily in storage facilities, apartments, offices and other versions of commercial real estate. Commercial property does not follow the same market as residential property, which has suffered this year.